Summary
1. Even though many of the problems may not have directly linked to FairPoint Communications, the executives should not be taking bonuses when a high number of subscribers are receiving inadequate service. 2. Any additional compensation related to the acquisition should have been postponed until the network was back to normal. 3. The fact that the CEO made more in 2007 does not at all ameliorate the situation.
Analysis
FairPoint customers have a right to be angry over executives at the telco receiving bonuses “at roughly the same time that the company was being lambasted.” From a public relations standpoint, it is a major blunder. It could give the impression that there were serious doubts at the top levels of the company about the future viability of the firm. However, FairPoint knew that Verizon could not allow this transition to fail. The RBOC would have done everything necessary in terms of funds and manpower to make things right.
Hence, there is no other explanation than the executives had already paid in their heads, if not in actuality, for personal stuff. All they probably had to do was wait about six months. Unfortunately, this extra compensation will taint what will likely be one of the biggest success stories in the history of telecom.
